Chart of the Day - Monday, May 5, 2025

🏆  Today's Chart of the Day was shared by Jason Perz (@JasonP138). 
 

• U.S. Stocks cooled off today, with the S&P 500 ending a nine-day winning streak. However, other developed markets continued to rally, with the iShares Japan ETF ($EWJ) closing at a seven-month high. 
   
• Like many international markets, Japan has outperformed the U.S. by a notable margin this year. $EWJ is up +7.9% YTD while the S&P 500 is down -3.9%.  
   
• $EWJ made a V-shaped recovery from a -17% drawdown over the past month. Jason points out that it's testing a well-defined resistance level at $72. Price has been rejected at $72 several times over the past year, but this is the final hurdle before all-time highs.  
   

The Takeaway: The Japan ETF ($EWJ) is trying to join the party in international markets as it knocks on resistance at $72. For more on the strength in international markets, check out Jason's full post here.